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Case Studies

Persistence Pays off during Refinance Process

Challenge:

Carl and Anna Hudson decided to work with Pinnacle on their mortgage when they built their 10,000-square-foot dream home in Lebanon, Tenn. They chose an in-house jumbo loan, because the amount they were borrowing was above the limit for a loan that conforms to government lending limit guidelines.

“It was a great product and blew everybody out of the water with rates,” Anna Hudson said.

In fall of 2011, the Hudsons wanted to take advantage of low mortgage interest rates by refinancing. They liquidated some assets so they could restructure their loan to a “417,” which stands for the maximum amount ($417,000) considered to be a “conforming” loan. Rates for conforming loans are typically lower than for jumbo loans.

Anna was on paid maternity leave when the Hudsons returned to Pinnacle to refinance. She decided to take an extended leave, so the income structure for the loan needed to be changed to include only Carl’s.

Further complicating matters, the couple had a home equity line of credit with another bank. The second mortgage had to be subordinated in order for the refinance to go through. Working with the other bank to subordinate the second mortgage alone took more than 50 days.

Solution:

The Hudsons’ mortgage advisor sat down with the couple at the outset and painted a picture of what the process would look like. He explained how the state of the mortgage industry could make the necessary steps take longer than in years past. Because of the borrowers’ particularly complex situation, the loan closed about six months later.

Anna Hudson said that she tends to be an alarmist, but her Pinnacle mortgage advisor was thorough, diligent and optimistic.

“He could have put his hands up several times through the process, but he never did that,” Hudson said. “He was always very calm and knowledgeable about how we should proceed.”

The Hudsons’ mortgage advisor was available day and night throughout the process to answer questions or work through an issue. When necessary, he would get in touch with the underwriter for the latest information and keep the borrowers in the loop.

“We both had new babies, but he told me to call him on his cell phone or email him any time,” Hudson said. “He was on vacation when the final underwriting came through and didn’t miss a beat.”

Result:

Because they refinanced, the Hudsons were able to lock in lower rates for a shorter term, 15 years, saving them thousands of dollars in interest. They were so pleased with the experience that they have recommended their mortgage advisor to friends and family.

“I will never bank anywhere else,” Hudson said. “My brother found a house in Atlanta, and I immediately sent a text to inquire if Pinnacle could process mortgages in Georgia. Our advisor made it happen in 30 days, and I know he works that hard for everyone.”